22nd Nov 2021 16:21
(Alliance News) - Swiss commodities trading group Glencore PLC said Monday that it would suspend a zinc sulphide production line in Italy due to soaring energy prices.
Glencore unit Portovesme Srl said the line would be placed on "care and maintenance" by the end of December and "until such time that there's a meaningful change in power market prices".
The move affects an operation that produce 100,000 tonnes of zinc sulphide per annum.
"This decision has been taken due to high power prices experienced in Italy and the rest of Europe since earlier this year," Portovesme said in a statement.
Energy prices have soared across Europe, raising concerns for industries that need high amounts of electricity and for consumers who could see huge utility bills in the coming winter.
Portovesme said that as an energy-intensive industry, it is "highly dependent on competitive and stable electricity prices".
Zinc prices jumped by more than three percent to USD3,337.50 per tonne following the announcement.
Zinc sulphide is used for X-ray screens or as a pigment for paints.
Shares in Glencore were up 1.1% at 373.50 pence on Monday afternoon in London, while its Johannesburg shares closed 1.2% higher at ZAR78.54.
source: AFP
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